Pound heading for biggest drop in six months

The pound is hurtling towards its biggest six-month drop against the US dollar since the Brexit referendum in 2016.

Sterling fell a whopping 0.46% to $1.2127 by mid-afternoon on Wednesday.

This is its lowest level since 16 June, when the Bank of England raised its key policy rate by 25 basis points to 1.25%.

Sky News reports the pound is down more than 10% against the dollar this year, thanks to performance hampered by a strong US currency but also fears of a major UK economic slowdown, surging inflation, and growing uncertainty about the consequences of Brexit.